Launch delays trip Research In Motion

Firm lowers subscriber outlook on products' late arrival

MattAndrejczak

MichaelBaron

NEW YORK (MarketWatch) -- Research In Motion Ltd. slipped Wednesday after the provider of the popular BlackBerry communications device cut its subscriber outlook for the next two quarters.

Ontario-based RIM
RIMM
(RIM) blamed unanticipated delays in launching two of its latest BlackBerry devices by U.S. carriers Cingular Wireless and Verizon Communications.

The company said the BlackBerry 8700 Series for EDGE networks and the BlackBerry 7130 Series for EvDO networks became available only this week for corporate customers. EDGE and EvDO are two of the major technology standards for next-generation wireless communications.

As a result, RIM said its third-quarter subscriber forecast would fall 8% shy of its previous estimate of 680,000 to 710,000 new additions. Its fourth-quarter subscriber additions would be roughly 3% below its prior outlook for 775,000 to 825,000, the company added.

Company spokesman Shelly Sofer declined to comment about reasons for the product delays.

The stock fell 80 cents, or 1.2%, to $66.28. It had fallen as much as 7% earlier in the session.

Still, RIM maintained its third-quarter sales forecast of between $540 million and $570 million. It added the lowered subscriber outlook should not have a "material impact" on fourth-quarter sales.

The current average estimate of 24 analysts polled by Thomson First Call is for revenue of $558.2 million in the third quarter ending in November and $623.7 million in the fourth quarter.

Cingular spokesman John Kampfe said the 8700C BlackBerry will start selling at its U.S. stores and at consumer electronics retailer Best Buy starting Friday -- the start of the traditional gift-giving season. It was originally slated for release Nov. 21, but "minor modifications" delayed the start date, he said, without offering any specifics.

The 8700C is the first BlackBerry device to be powered by chips from Intel Corp.
INTC, +0.34%
the world's largest supplier of computer chips. The device is said to offer longer battery life and more processing horsepower for faster Web browsing and e-mailing. It will sell for as low as $299.

RIM plans to report its financial results for the third quarter on Dec. 21.

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